deflation

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Deflation

Decline in the prices of goods and services. Antithesis of inflation.

Deflation

A situation in which a currency gains value, often resulting from a decrease in prices. Many economists believe that deflation is the result a fall in demand for goods and services, which causes producers to reduce prices. This reduces their profits and causes a reduction in investment, which contributes to a further drop in demand. Because of this deflationary spiral, deflation is often associated with recessions and depressions and has been known to cause unemployment. It is also called negative inflation. See also: Lost Decade, Inflation.

deflation

A reduction in consumer or wholesale prices. The term generally applies to more than just a temporary decline. Compare inflation. See also disinflation.

Deflation.

Deflation, the opposite of inflation, is a gradual drop in the cost of goods and services, usually caused by a surplus of goods and a shortage of cash.

Although deflation seems to increase your buying power in its early stages, it is generally considered a negative economic trend. That's because it is typically accompanied by rising unemployment, falling production, and limited investment.

deflation

a fall in the rate of growth of the general level of prices in an economy, or an absolute reduction in the general level of prices (see PRICE INDEX). The authorities may seek to deflate the economy in order to combat INFLATION and eliminate a BALANCE OF PAYMENTS deficit by using restrictive monetary and fiscal measures, i.e. increasing interest rates and taxes to cut spending. See ECONOMIC POLICY, MONETARY POLICY, FISCAL POLICY, PRICES AND INCOMES POLICY.

deflation

a reduction in the level of NATIONAL INCOME and output usually accompanied by a fall in the general price level (DISINFLATION).

A deflation is often deliberately brought about by the authorities in order to reduce INFLATION and to improve the BALANCE OF PAYMENTS by reducing import demand. Instruments of deflationary policy include fiscal measures (e.g. tax increases) and monetary measures (e.g. high interest rates). See MONETARY POLICY, FISCAL POLICY.

References in periodicals archive ?
The clinical diagnosis of implant rupture based on physical exam findings is unreliable and will miss more than half of implant ruptures, especially when loss of volume or cosmetic deformity are absent.
Danish studies suggest there would be at least 22,500 implant ruptures per year in augmentation patients, whether the implants were made by Inamed, Mentor, or another company (FDA Summary Panel Memoranda).
The Lancet article further describes the health problems that result when an implant ruptures and allows silicone gel to spread throughout the body.
The Agency also plans to proceed with a study on implant rupture rates, and to review relevant scientific literature.
IRIS enhances the ability of MRI to demonstrate silicone implant rupture or leakage by enhancing the contrast between silicone and surrounding tissues.
The report said the most serious problems associated with implants arise when the tissue around them contracts, when the implant ruptures, or when infection occurs.
Complaints about implant ruptures, leak-ages, painful and costly side effects, and possible associations with cancer or autoimmune disorders moved the FDA in 1992 to limit their use to initial or revision breast reconstruction in women who agreed to enroll in clinical studies.
But women should be aware that breast implants may interfere with the detection of cancer and that mammograms do not detect implant ruptures or leakage.
When a silicone implant ruptures, silicone gel can migrate away from the breast area [2].